What Happened?
A number of stocks jumped in the afternoon session after a confluence of positive economic data suggested a healthy outlook for consumer spending.
Key indicators are boosting investor optimism. Financial markets are anticipating a September interest rate cut from the Federal Reserve following a cooling job market report. A rate cut typically lowers borrowing costs for consumers, potentially increasing disposable income for spending on non-essential goods. Further bolstering this outlook, the latest Producer Price Index (PPI), a measure of inflation, edged down 0.1% in August. This suggests inflation is moderating, which helps preserve consumer purchasing power. Additionally, major U.S. banks have reported that consumers remain financially healthy, with spending holding steady and credit quality remaining solid, creating a supportive backdrop for consumer-focused companies.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Footwear company Genesco (NYSE: GCO) jumped 4%. Is now the time to buy Genesco? Access our full analysis report here, it’s free.
- Home Furnishings company Lovesac (NASDAQ: LOVE) jumped 5.7%. Is now the time to buy Lovesac? Access our full analysis report here, it’s free.
- Leisure Facilities company Sphere Entertainment (NYSE: SPHR) jumped 4.3%. Is now the time to buy Sphere Entertainment? Access our full analysis report here, it’s free.
Zooming In On Lovesac (LOVE)
Lovesac’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 3% on the news that the company disclosed it suffered a data breach resulting from a ransomware attack.
According to reports, hackers gained unauthorized access to Lovesac's internal systems between February 12 and March 3, 2025, and stole data. The incident is linked to the RansomHub ransomware group. While the company has not disclosed the exact number of individuals affected, the stolen information includes full names and other sensitive personal identifiers. Lovesac discovered the suspicious activity on February 28. In response, the company is offering two years of complimentary identity monitoring and credit protection services through Experian to those impacted. Lovesac stated that it has no indication the stolen data has been misused but has taken steps to secure its network against future attacks.
Lovesac is down 15.7% since the beginning of the year, and at $20.17 per share, it is trading 47.8% below its 52-week high of $38.64 from December 2024. Investors who bought $1,000 worth of Lovesac’s shares 5 years ago would now be looking at an investment worth $720.18.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
